The Ken & Edna Morrison Charitable Trust Trustees, report and fmancial statements Registered number 327639 5 April 2021
The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
| Contents | |||
|---|---|---|---|
| Trustees’ Report | 3 | ||
| Statement of trustees’ responsibilities | in respect | of the Trustees’ report and the financial statements | 6 |
| Independent Examiner's report to the members of The Ken and Edna Morrison Charitable Trust | 7 | ||
| Statement of financial activities | 8 | ||
| Balance sheet | 9 | ||
| Cashflow Statement | 10 | ||
| Notes | 11 |
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Trustees’ report
Reference and administrative details
Trustees Eleanor Marie Kernighan William James Duncan Morrison
Governing document Deed of Trust dated 5 May 1987
Registered address
c/o Progeny Private Law 1A Tower Square Leeds LS1 4DL
Bankers
NatWest West Yorkshire Retain CSC 1 Victoria Place Holbeck Leeds LS11 5AN
Investment Managers
Aberdeen Standard Capital Minerva House 29 East Parade Leeds LS1 5PS
Accountants
KPMG LLP 1 Sovereign Square Sovereign Street Leeds LS1 4DA
Independent Examiner
Mr M Walker 4 West Winds Menston LS29 6QD
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Trustees’ report (continued)
The trustees present their report along with the financial statements for the year ended 5 April 2021. The financial statements have been prepared in accordance with the accounting policies set out on pages 11-12 and comply with the trust deed, Charities Act 2011 and Accounting and reporting by Charities: Statement of Recommended Practice in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland (FRS 102).
Structure, governance and management
The Ken & Edna Morrison Charitable Trust (“the Trust”) is an unincorporated charity (registered charity number 327639) established under a Trust Deed dated 5 May 1987.
The power of recruiting and appointing future trustees vests with the current trustees.
At annual trustee meetings, the trustees collectively agree the broad strategy and areas of activity for the Trust, including those of grant making, investment and risk management.
The trustees are empowered by the Trust Deed to apply the income of the Trust for any charitable purpose they think fit subject to the objects of the Trust. The Trustees are responsible for day to day running of the Trust and are deemed to act as key management personnel. They do not receive remuneration from the Trust.
The trustees have the same full and unrestricted powers of investing and transferring investments as if they are beneficially entitled to the Trust Fund.
The trustees have reviewed the effectiveness of internal controls and are happy with the controls in place given the simple nature of the Trust. There is also currently no need for an internal audit function given the straightforward nature of the Trust.
The trustees are mindful of their duties in connection with the induction and training for charitable trustees.
Principal risks and uncertainties
Financial risk management objectives and policies
The Trust uses financial instruments comprising cash and investments. The main purpose of these is to finance the working capital of the Trust and the longer term income and capital needs.
The Trust considers movements in investment prices and returns to be its main risk and uses an investment fund manager to manage this risk.
Objectives and activities
The objectives of the trustees are to apply the incoming resources of the Trust by making grants for the benefit of one or more charitable institutions or individuals, including but not restricted to people with a disability or special needs, education, training or for such other charitable purposes at the trustees’ discretion. The capital may be applied for charitable purposes or retained by the trustees at their discretion to finance the working capital of the Trust.
The trustees identify projects and organisations they wish to support. Requests from people or organisations who apply speculatively will be considered if they are pertinent to the Trust’s objectives. The trustees also have a policy that they make only one off grants with no guarantees of future funding.
Public benefit
The trustees are aware of the Charity Commission’s advice on Charities and Public Benefit. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year. The trustees do not discriminate against any party when considering their grant making policy.
The benefits of the charitable activities of the Trust are primarily to a section of the public in accordance with the charitable objects described above in the trustees' objectives and activities.
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Statement of trustees’ responsibilities in respect of the Trustees’ report and the financial statements
Under the trust deed and charity law, the trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. The trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.
In preparing these financial statements, generally accepted accounting practice entails that the trustees:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
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state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements;
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assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
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use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations or have no realistic alternative but to do so.
The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Registered number 327639 / 5 April 2021
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Independent examfiner's report to tbe members of Tbe Ken and Edna Morrison
Charitable Trust
I report on the acc
The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Statement of financial activities for the year ended 5 April 2021
| Note Income and endowments from: Investments Other income Total income and endowments Expenditure on: Charitable activities 2 Raising funds Total expenditure Net (losses)/gains on investments 6 Net (expenditure)/income Net movement in funds Reconciliation of funds Funds at 6 April 2020 Funds at 5 April 2021 |
Total 2021 Total 2020 £ £ 141,447 173,286 258 225 141,705 173,511 (78,960) (149,000) (22,621) (21,338) (101,580) (170,338) 1,144,364 (422,259) 1,184,489 (419,086) 1,184,489 (419,086) 4,571,277 4,990,363 5,755,766 4,571,277 |
|---|---|
Registered number 327639 / 5 April 2021
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| as at5 April2021 Fixed assets Investments Cashinvestment Current assets Cash at bank andinhand Note 6 Debtor 7 Creditors: amounts falling due within one year 8 Net current assets Net assets ' |
2021 2020 £ £ 5,366,604 4,437,526 294,751 100,246 5,661,355 4,537,772 102,842 41,782 919 110 103,761 41,892 (9,350) (8,387) 94,411 33,505 5,755,766 4,571,277 |
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
| Cash Flow Statement for year ended 5 April 2021 Note Cash flows from operating activities Net income for the reporting period Adjustments for: Losses/(Gains) on investments Dividends, interest from investments Increase in creditors Decrease/(increase) in debtors Net cash provided by operating activities Cash flows from investing activities Dividends, interest from investments Net proceeds from sale/(purchases) of investments Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year |
2021 £ 1,184,489 (1,144,364) (141,705) 963 (809) (101,426) 141,705 215,286 356,991 255,565 142,028 397,593 |
2020 £ (419,086) 422,259 (173,511) 275 323 (169,740) 173,511 (82,466) 91,045 (78,695) 220,723 142,028 |
|---|---|---|
The notes on pages 11 to 13 form part of these financial statements.
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Notes
(forming part of the financial statements)
1 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Trust’s financial statements.
Basis of preparation and assessment of going concern
The Trust is a public benefit entity.
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2016.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The most significant area of risk in this year and for the future is around the valuation of the investments. This however is not a going concern risk as there is a significant net asset balance at year end and the trustees have control over the level of grants the Trust awards.
Incoming resources
Investment income and bank interest is accounted for on an accrual basis.
Resources expended
All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs directly attributable to that activity. Where costs (including overheads) cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources and the time spent on those activities.
Governance costs are those incurred in the governance arrangement of the charity which relate to the general running of the charity as opposed to those costs associated with generating funds or charitable activities and its costs are primarily associated with constitutional and statutory requirements.
Taxation
The Ken & Edna Morrison Charitable Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2011 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge has arisen in the year (2020: £nil) .
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
Notes (continued)
1 Accounting policies (continued)
Fixed asset investments
Investments are stated at market value being the bid price or the last traded price at the date of the net assets statement.
The realised and unrealised gains on investments are reflected in the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
2 Expenditure on charitable activities
| xpenditure on charitable activities | ||
|---|---|---|
| Grants (note 3) Governance costs (note 4) |
2021 £ 75,460 3,500 78,960 |
2020 £ 145,000 4,000 |
| 149,000 |
3 Grants payable
There were 4 grants made to organisations during the year amounting to £75,460 as detailed below:
| Mind in Bradford Samaritans RABI Prince’s Trust |
2021 £ 28,000 28,000 4,460 15,000 |
|---|---|
| 75,460 |
4 Governance costs
Management and administration costs:
| Accounting advice and other professional fees Independent Examination |
2021 2020 £ £ 3,000 3,000 500 1,000 3,500 4,000 |
|---|---|
5 Trustees remuneration and expenses
No remuneration or expenses were paid to the trustees for their services during the year (2020: £nil). No staff were employed by the Trust during the year ( 2020: none ).
Registered number 327639 / 5 April 2021
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The Ken & Edna Morrison Charitable Trust Trustees’ report and financial statements 5 April 2021
6 Listed Investments
| 6 Listed Investments | ||||
|---|---|---|---|---|
| Investments at market value at 6 April 2020 Add: investments purchased in the year (at cost) Deduct: investments sold in the year (at market value) Deduct: investments purchased and sold during the year Net gain/(loss) on revaluation Investments at market value at 5 April 2021 Proceeds of investments sold in the year Deduct: investments sold in the year (at market value) Deduct: investments purchased and sold during the year Realised gain/(loss) at market value at 5 April 2021 7 Debtors Tax refund due Investment income due 8 Creditors: amounts falling due within one year Accruals |
2021 £ 4,437,526 652,360 (744,427) - 1,021,145 5,366,604 867,646 (744,427) - 123,219 2021 £ 246 673 919 2021 £ 9,350 9,350 |
2020 £ 4,777,319 784,816 (738,968) - (385,641) 4,437,526 702,350 (738,968) - (36,618) 2020 £ 110 - 110 2020 £ 8,387 8,387 |
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9 Payments to Trustees and related party transactions
There have been no related party transactions in the reporting period.
Registered number 327639 / 5 April 2021
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